Dabur India PAT up 24% to Rs 494 cr in Q3, operating revenue rises 16%

OTC drugs, health supplements and immunity boosting products grow in healthy double digits

Fast moving consumer goods (FMCG) major Dabur India reported a 23.7 percent year-on-year jump in net profit for the October-December quarter. The firm's profit after tax (PAT) rose to Rs 494 crore from Rs 399 crore during the corresponding quarter previous year.

Dabur's operating revenue recorded a healthy 16 percent yoy growth to Rs 2729 crore - up from Rs 2353 crore - backed by a strong volume uptake. During the quarter, it reported a 18 percent surge in its volume offtake.

Over-the-counter medicines, health supplements and immunity boosting products from the portfolio grew by healthy double digits, apart from certain personal care items. While, it's OTC portfolio recorded 34.1 per cent growth YoY, the health supplements business surged 34.7 per cent, while immunity boosters grew 23.2 per cent, the company said. Further, oral care portfolio expanded by 28 per cent, followed by shampoos (27.1 per cent) and hair oils business (11.6 per cent).

Increased awareness on healthcare and the ongoing pandemic helped it's healthcare business that now forms 44 percent of its total sales in India, up from 41 percent a year ago. "Riding on our strategic business transformation exercise aimed at developing aggressive growth engines in the core business areas, our domestic Healthcare vertical ended the quarter with a 28% growth. We are also witnessing a revival in discretionary spending by consumers, which helped the Home & Personal care business grow by 16%. Our International Business has also staged a smart recovery and reported a growth of 13.5% during the quarter", said Mohit Malhotra, chief executive officer, Dabur India.

Its India business that contributes some two-thirds to its topline , registered 19.5 per cent growth, bouyed on 18.1 per cent growth in volumes. While the international business grew by 14.1 percent, in constant currency terms.

Formation of a new wholly-owned subsidiary:

The firm informed the Bombay Stock Exchange todaym that it is planning to set up a wholly-owned subsidiary to make, sell and export consumer care products. The new subsidiary, with an authorised share capital of Rs 1 crore, will be aimed to boost its consumer care business, which has grown at healthy double digit rates in recent quarters.

New CFO:

Dabur India will get a new chief financial officer on April as incumbent Lalit Malik has decided to step down. Ankush Jain, currently the vice-president for financial planning and analysis, will replace Malik. Jain, who has over two decades of experience in GSK , PwC and Carlsberg, had joined Dabur in late-2016.